Comments on: Avoid Exchange-Traded Funds (ETFs) as Part of Your Investment Strategyhttp://blog.equifax.com/retirement/avoid-exchange-traded-funds-etfs-as-part-of-your-investment-strategy/
Thu, 30 Jul 2015 15:27:23 +0000hourly1http://wordpress.org/?v=4.2.3By: Adamhttp://blog.equifax.com/retirement/avoid-exchange-traded-funds-etfs-as-part-of-your-investment-strategy/#comment-230
Sun, 28 Nov 2010 18:50:09 +0000http://ec2-50-19-98-117.compute-1.amazonaws.com/retirement/avoid-exchange-traded-funds-etfs-as-part-of-your-investment-strategy/#comment-230With all due respect to the author of this article the first three points he makes against ETF's (ie. Transaction Costs, Brokerage Commissions, and Difference in Market Price) are all essentially the same thing.

Furthermore, the truth is ETF's enable you to diversify BETTER in comparison to stocks, if they are used to balance your portfolio and not take specific bets on industries/commodities/countries etc…

For example say you want to have an international component to your account you can buy and international focused ETF, that may protect against domestic downturns.

I agree it may not be the smartest thing to speculate with ETF's but doing so would be no different than speculating with specific stocks, and they are inherently less risky based on the fact that they track a larger number of assets, thus removing components of idiosyncratic risk.